Getting an unfavorable decision from the IRS is disappointing, but it is also not always the end of the story. You are not obligated to accept these initial determinations regarding tax debts or controversies, thanks to the appeals process.
An appeal is your chance to challenge the decision the IRS made in your case. While it can result in a better outcome, the process is difficult—especially without the help of a dedicated tax attorney. Before you attempt to resolve matters on your own, consider discussing your case with a Richmond IRS appeals lawyer.
The appeals system can be beneficial during the process of resolving a tax dispute, but it is not available to everyone. First, it is helpful to understand when an appeal is even possible. The IRS allows for appeals following audits and other decisions, and they will notify a taxpayer as part of that decision if an appeal is an option.
Some situations cannot be appealed. For example, an appeal is not an option if the IRS sends correspondence other than a decision, such as a bill or a notice. Appeals also are not right for someone who agrees with the IRS on what is owed but lacks the resources to pay it.
Different circumstances could lead to grounds for a successful appeal. A tax appeals attorney in Richmond may be able to help when the IRS makes a mistake after interpreting the law. Other appeals are necessary because federal agents fail to correctly identify and understand the facts of the case. Having records to prove otherwise in these situations is crucial.
Appealing may also be the best approach after the denial of an attempt to resolve a tax debt. One common example is when the IRS refuses an offer in compromise, which the taxpayer believes it should have accepted.
There are different options available to taxpayers for appealing a tax decision that they do not agree with. Unlike the court system, which has multiple layers of appeal, the IRS only has one level for reconsidering past decisions. There are two different ways to approach this process: small case requests and formal written protests. Both approaches are handled by a local appeals office, which is not the same one that made the original decision.
A small case request is for cases involving $25,000 or less in penalties, taxes, and interest. The decision letter from the IRS explains the deadline to make this request, which is usually 30 days. Taxpayers can submit a written statement, notifying the government of the issues they disagree with, and request an appeals conference. At this conference, agents will consider the original decision based on the taxpayer’s statement.
A formal protest is for those who do not qualify for small case requests. This should also be done in writing, but there are additional formalities, including signing the statement under the penalty of perjury.
Determining the best way to proceed can be difficult for someone, especially if they are not familiar with how the appellate system works. A Richmond IRS appeals attorney could assist with this process, as well as answer questions on the possible outcomes.
If you intend to challenge the outcome of your audit or tax issue, doing so alone can be a mistake. Let an experienced professional advocate for you on your behalf. Reach out to a Richmond IRS appeals lawyer as soon as possible for a private consultation.